F e e d
i n g r e d i e n t s
n e w s
f r o m
Increasing
demand
fertilisers increases
phosphate prices
T e s s e n d e r l o
for
feed
In the past few months the feed industry has been
confronted by increased feed phosphate prices and
tightness of product. In this issue of Talking FEED
ingredients we would like to take the opportunity to reexplain the underlying factors that have caused this rise in
prices that started in 2007 1 . These increases are not the
result of a single factor but a combination of demand and
supply factors.
Out of the annual world phosphate production, estimated at
44.5 million ton (expressed in P2O5) less than a 3.0 million tons
are used for the production of approximately 7 million tons of
feed phosphates (Figure 1). Because fertilisers and feed
phosphates are both based on phosphoric acid (PPA) it is quit
obvious that that the surge in feed phosphate price is not an
event on its own but determined by developments within the
fertiliser industry.
AliGlys: Tessenderlo Group
new range of metalglycinates
Agricultural production is developing very fast especially in
Asia, more especially China, and Latin America, triggered by a
further rise in global population and a global rise in income.
Figure 3: World cereal production and utilisation
5.6%
million tonnes
2150
87.6%
Phosphate fertilisers
P3
Driving forces of fertiliser phosphates:
Figure 1: World phosphate production and use
total 44.5 mio mt P2O5
6.7%
June 2008
G r o u p
Feed phosphates
2100
2050
2000
1950
1900
1850
Food / Industrial
1800
1996
1998
2000
2002
2004
2006
2008
Figure 2: Global population increase
Million
Production
10
9
8
7
6
5
4
3
2
1
0
Source: FAO
1950
1960
1970
1980
1990
2000
Industrial
2010
2020
2030
2040
Developing
Source: UN
1
Utilization
2050
In this issue of Talking FEED ingredients we present in
detail our new range of metal glycinates marketed under
the brand name AliGlys. Especially the purity of these
products is discussed and the underlying methods to
analyse this. Also we devote a large part of this issue to
explain the driving forces of the surge in prices for feed
phosphates. All your comments concerning this and
previous newsletters are most welcome to us at:
[email protected]
See also Talking FEED ingredients June 2007 issue.
Aliphos
Italphos
Windmill
In 2005 the world population, according to the United Nations,
was around 6.5 billion, and it is expected to grow in 2050 to 9.2
billion. Even between 2005 and 2010 the population is
expected to grow by 400 million people (Figure 2). All have to
be fed; therefore there is an increasing demand for vegetable
products like grains, rice and others (Figure 3).
Thanks to the rise in average income there is an increasing
demand for more luxury goods like meat. As a consequence
the feed industry needs more feed grains, maize and
soybeans. So any increase in meat consumption has an
additional and accelerating effect on grain utilisation (Figures 4
& 5; source FAO).
na
La
tin
Am
er
ic
a
Figure 4: Meat consumption / capita: trend
co
ut
ri
es
C
hi
Figure 6: Bio-fuel production forecast (Source: Integer)
2015
or
ld
1998
W
In
du
st
r ia
lc
ou
nt
ri
es
D
ev
el
op
i
ng
2030
0
20
40
60
kg meat/capita/year
80
100
Figure 5: Kilograms of feed grain to produce 1
kilogram of meat
On the supply side, the availability of sulphur played a major
role. Sulphuric acid is needed for the production of phosphoric
acid (Figure 7). Because of the low availability of sulphur,
prices have risen to a level never seen before (Figure 8).
As a result of the increased sulphur cost and the increased
cost of rock phosphate, the price of phosphoric acid (PPA)
equally increased considerably. Although PPA production
increased in 2007, the trade of PPA decreased by 2% because
of more downstream processing domestically tightening the
market further.
H2SO4
8
7
kg feed grain
6
5
Phosphoric acid
production
Phosphate
rock
H3PO4
4
3
2
Gypsum
CaSO4.xH2O
1
Concentration
purification
Deflurination
0
Poultry
Pork
Beef
Purified feed
H3PO4
Record prices have been noted for cereals and other vegetable
products supporting a further demand for fertilisers.
CaCO3 / CaO
After a hesitant start, the production of bio-fuels has come on
steam mainly because of subsidies or mix-in obligations
(Figure 6). Large quantities of vegetable products are needed
to feed these bio-fuel plants also adding to an increased
demand for fertilisers. As a result of all these factors, the
consumption of phosphate fertilisers increased from 2006 to
2007 by 5.1% to 38.6 million tonnes P2O5.
Fertilizers
DAP / MAP / NPK
Drying
Conditioning
End product
CaHPO4
Dicalcium phosphate
Figure 7: Production of DCP
Aliphos
Italphos
Windmill
Reaction
In addition the P2O5 content of the rock is declining from an
average 31.6% to 31.3%, meaning more rock has to be
processed to produce the same quantity of PPA. All these
factors resulted in a fivefold increase of phosphate product
prices (see figure 9). On top of this China installed an export
tax on phosphate fertilisers (MAP/DAP) of 135%, which added
to the problems.
add to a possible further imbalance between supply and
demand for phosphate products on the world market. In
conclusion, it is expected that phosphate raw material prices
will remain strong during the next years.
Phosphorus digestibility:
Although other measures have been taken by feed producers
to cope with the high feed phosphate prices, using correct
phosphor digestibility figures could offer a solution. This can be
achieved by formulating feed based on digestible P (dP)
instead of total or even available P. Over the years
Tessenderlo Group has carried out many in vivo trials to
determine the digestibility of its different feed phosphates (see
table). Using these dP figures allows the inclusion of feed
phosphates in feed to be reduced without endangering animal
performance or welfare. For example, Dicalcium phosphate
(DCP) is formulated to contain 70% dP for pigs. However,
Aliphos Dical a dihydrate DCP has proven in many animal trial
to contain 80% dP. Formulating with this level of dP gives a
cost saving of €75 per ton of DCP.
Figure 8: Sulphur spot price comparison (source: Fertilizer
Week)
Table: P digestibility TG feed phosphates
Rock phos (US$/t)
Phos acid / DAP (US$/t)
500
450
400
350
300
250
200
150
100
50
0
3000
2700
2400
2100
1800
1500
1200
900
600
300
0
gP/
KG
Phosphate
Figure 9: P raw material prices
DCP
Aliphos Dical
Italphos Dical
Windmill Dicalphos
MDCP
Aliphos / Italphos
Modical
MCP
Aliphos / Italphos
Monocal
Monomag (CaMgP)
PIGS
% DIG. P g DIg. P
POULTRY
% DIG. P g DIG. P
182
180
200
80
72
72
145.6
129.6
144.0
80
75
73.5
145.6
135.0
147.0
219
80
175.2
80
175.2
229
90
206.1
85
194.7
200
84
168.0
2001 2002 2003 2004 2005 2006 2007 2008
(YTD)
Phosacid fob N. Africa
DAP fob Tampa
Phos Rock fob Morocco
Source: Fertilizer Week
Effects for feed phosphates:
The feed phosphate market is marginal compared to the
fertiliser market and therefore any development in the fertiliser
market will affect the feed phosphate market directly. In 2007
prices for feed phosphates were lower than fertilisers, therefore
the price increase of feed phosphates was relatively higher.
Because of the high prices for sulphuric acid, phosphate rock
and phosphoric acid, feed phosphates had to follow the
increase in price of these materials in competition with the
fertiliser industry that was willing to pay the prices demanded
acting in a dramatically changed market. It is expected that in
the second half of 2008, partly because of the Chinese export
tax (135%) on phosphate products, the situation will remain
and might become even tighter (mainly for sulphur), leading to
a possible further prices increase for feed phosphates. The
earthquake that hit the Chinese province of Shichuan in May
partly destroyed the Chinese phosphate industry, which could
Aliphos
Italphos
New! Tessenderlo Group
metal-Glycinates: AliGlys.
Trace minerals are essential in all animals for a
wide variety of physiological processes. For
many years trace elements such as copper
(Cu), manganese (Mn), zinc (Zn) and others
have been permitted additives in animal feeds,
usually in the form of inorganic salts such as
oxides and sulphates.
However, a sufficiently intake of trace elements is not always
reached because of insufficient absorption. Delivering trace
elements with higher bioavailability allows the formulation of
Windmill
feeds with lower levels of trace elements or enhanced
performance of animals. Therefore, more bio-available organic
minerals in the form of chelates, proteinates and glycinates
have been developed over the years. Tessenderlo Group,
Europe’s biggest producer of synthetic glycine, has developed
its own range of highly pure and consistent metal bisglycinates
marketed under the brand name of AliGlys (AliGlys Zn 21%,
AliGlys Mn 21% and AliGlys Cu 21%)
But also the metal to glycine ratio is more stoichiometrically
similar to pure Zn-glycinate compared to other products. On the
other hand the ratio of metal to glycine (N) of a pure metalglycine-sulphate complex indicates that most probably amino
acids other than glycine are used in the production of the
competitor products.
AliGlys, product purity: I.
AliGlys, product purity: II
The AliGlys products are pure metal glycinates. The metal
content is standardised at 21% to facilitate easy dosing of the
product in pre-mixes.
Most of the metal-glycinates on the market are not pure metalglycinates but are complexes of metal- glycine- sulphate
containing high levels of SO4 (see table1).
In addition to the more simple standard analytical methods, more
sophisticated methods exist to define the molecular structure of
13
metal-glycinates. One of these methods is the so-called C
solid-state spectra analytical method.
Using this method enables to determine whether or not the
product is a pure bisglycinate (see figure 2; annex).
The first part of figure 2 is the spectra analysis of glycine which
clearly shows the two C-atoms in glycine. In the second picture
the structure of AliGlys Zn is shown. This clearly shows that the
spectra of one C-atom has changed, meaning that the Zn ion
has been incorperated into the molecule structure of glycine thus
leading to the conclusion that AliGlys Zn is a pure Zn-glycinate.
In contrast, to the third part represents the spectra analysis of
another source of Zn-glycinate. There are no changes in the
molecular structure, which leads to the conclusion that this
product is not a Zn-glycinate but, as already shown with the
standard analysis, probably just a mixture of ZnSO4 and glycine.
Table 1: Overview of the composition of pure Zn-glycinate,
pure Zn-SO4-glycine complex and commercial glycinates
available on the market.
Product
Zn %
SO4
N%
Glycine %
%
(calculated)
Pure glycinate
30.6
0
13.1
70.1
AliGlys Zn
21.0
0
14.6
78.1
Comp I
22.3
32.4
4.95
26.5
Comp II
22.4
32.9
5.0
26.8
Comp III a
23.0
29.6
5.7
30.5
Comp III b
22.3
31.5
5.9
31.6
Zn-SO4-Glycine
27.6
40.6
5.9
31.6
complex
From these analyses it is clear that only AliGlys is a pure Znglycinate although it is standardised to contain 21% Zn by
means of diluting the product with glycine. AliGlys Zn does not
contain any sulphate, which distinguishes it from all other
competing products.
AliGlys, product purity: III.
Because the 13C solid state spectra analytical method is not a
method that is easily performed Tessenderlo Group has
developed a more simple but reliable method based on Infra Red
spectra analysis (IR spectra, see figure 3; annex).
In the first part of the figure the IR-spectra of a pure Cu-glycinate is
depicted, clearly showing the “carbonyl stretch” at approximately
1600 cm-1 wavelength. In the second picture the IR-spectra of
AliGlys Cu is shown, also here the carbonyl stretch can be clearly
seen, although a bit less pronounced because of the dilution with
glycine. In the third part the IR-spectra of a competing Cu-glycinate is
shown. The carbonyl stretch is less obvious and above all at
wavelength 1150 cm-1 a wide absorption is seen, which indicates the
presence of SO4 in the product. This is further evidence that metal
glycinates from other sources are not pure metal glycinates but
merely mixtures of metal and glycine
Conclusions:
Figure 1: Structure of copperbisglycinate monohydrate
Tessenderlo Group has developed a range of pure metal glycinates.
These products are marketed under the brand name AliGlys
(AliGlys Zn 21%, AliGlys Mn 21% and AliGlys Cu 21%). The
statement that the AliGlys products are pure metal glycinates can be
proven using different analytical methods and techniques, which
Tessenderlo Group offers as a service to its existing and -potentialcustomers. If you have any questions or inquiries or you would like to
check the purity and structure of the metal-glycinates you are using
currently, please contact us.
Tessenderlo Group Feed Ingredients
Leading the world in feed phosphates
Tessenderlo Group
Troonstraat 130, B-1050 Brussels, Belgium
Tel: +32 2 639 1811 Fax: +32 2 639 1940
www.tessenderlogroup.com
[email protected]
Annex: Talking FEED ingredients: June 2008
Figure 2: C13 Solid state spectra analysis of glycine, AliGlys Zn and a competitor Zn-glycinate.
Aliphos
Italphos
Windmill
Annex: Talking FEED ingredients: June 2008
Figure 3: IR spectra analysis of pure Cu-glycinate, AliGlys Cu and a competitor Cu-glycinate
Aliphos
Italphos
Windmill